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| 4 | 4 | | LCO No. 5520 1 of 3 |
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| 6 | 6 | | General Assembly Raised Bill No. 7310 |
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| 7 | 7 | | January Session, 2019 |
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| 8 | 8 | | LCO No. 5520 |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | Referred to Committee on COMMERCE |
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| 12 | 12 | | |
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| 13 | 13 | | |
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| 14 | 14 | | Introduced by: |
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| 15 | 15 | | (CE) |
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| 17 | 17 | | |
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| 18 | 18 | | |
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| 19 | 19 | | |
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| 20 | 20 | | AN ACT AUTHORIZING THE USE OF SMART CONTRACTS. |
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| 21 | 21 | | Be it enacted by the Senate and House of Representatives in General |
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| 22 | 22 | | Assembly convened: |
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| 23 | 23 | | |
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| 24 | 24 | | Section 1. (NEW) (Effective from passage) (a) As used in this section: 1 |
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| 25 | 25 | | (1) "Blockchain technology" means distributed ledger technology 2 |
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| 26 | 26 | | that uses a distributed, decentralized, shared and replicated ledger that 3 |
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| 27 | 27 | | may be public or private, permissioned or permissionless and that may 4 |
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| 28 | 28 | | include the use of electronic currencies or electronic tokens as a 5 |
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| 29 | 29 | | medium of electronic exchange; 6 |
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| 30 | 30 | | (2) "Cryptographic signature" means the use of public key 7 |
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| 31 | 31 | | algorithms to provide data integrity; 8 |
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| 32 | 32 | | (3) "Distributed ledger technology" means any database that is 9 |
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| 33 | 33 | | consensually shared and synchronized across multiple sites, 10 |
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| 34 | 34 | | institutions or geographies allowing for public witnesses to such 11 |
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| 35 | 35 | | transactions and may include supporting infrastructure, including 12 |
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| 36 | 36 | | blockchain technology, that uses a distributed, decentralized, shared 13 |
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| 37 | 37 | | and replicated ledger, whether public or private, permissioned or 14 Raised Bill No. 7310 |
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| 38 | 38 | | |
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| 39 | 39 | | |
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| 40 | 40 | | |
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| 41 | 41 | | LCO No. 5520 2 of 3 |
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| 42 | 42 | | |
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| 43 | 43 | | permissionless, and that may include the use of electronic currencies or 15 |
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| 44 | 44 | | electronic tokens as a medium of electronic storage; and 16 |
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| 45 | 45 | | (4) "Smart contract" means an event-driven computer program that 17 |
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| 46 | 46 | | executes on an electronic, distributed, decentralized, shared and 18 |
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| 47 | 47 | | replicated ledger that is used to automate transactions, including, but 19 |
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| 48 | 48 | | not limited to, transactions that (A) take custody over and instruct 20 |
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| 49 | 49 | | transfer of assets on such ledger, (B) create and distribute electronic 21 |
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| 50 | 50 | | assets, (C) synchronize information, or (D) manage identity and user 22 |
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| 51 | 51 | | access to software applications. 23 |
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| 52 | 52 | | (b) Any cryptographic signature that is generated and stored 24 |
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| 53 | 53 | | through distributed ledger technology shall be considered to be in an 25 |
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| 54 | 54 | | electronic form and to be an electronic signature. 26 |
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| 55 | 55 | | (c) Any record or contract that is secured through distributed ledger 27 |
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| 56 | 56 | | technology shall be considered to be in an electronic form and an 28 |
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| 57 | 57 | | electronic record. 29 |
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| 58 | 58 | | (d) Smart contracts may be utilized in commerce conducted or 30 |
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| 59 | 59 | | initiated in this state. No contract relating to a transaction shall be 31 |
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| 60 | 60 | | denied legal effect, validity or enforceability solely because such 32 |
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| 61 | 61 | | contract is executed through a smart contract. 33 |
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| 62 | 62 | | (e) Notwithstanding any provision of the general statutes, any 34 |
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| 63 | 63 | | person who, in or affecting commerce, uses distributed ledger 35 |
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| 64 | 64 | | technology to secure information that such person owns or has the 36 |
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| 65 | 65 | | right to use shall retain the same rights of ownership or use with 37 |
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| 66 | 66 | | respect to such information as such person would have without the 38 |
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| 67 | 67 | | use of distributed ledger technology. Nothing in this section shall be 39 |
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| 68 | 68 | | construed to apply to the use of distributed ledger technology to 40 |
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| 69 | 69 | | secure information in connection with a transaction to the extent that 41 |
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| 70 | 70 | | the terms of such transaction expressly provide for the transfer or 42 |
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| 71 | 71 | | rights of ownership or use with respect to such information. 43 |
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| 72 | 72 | | (f) Nothing in this section shall be construed to affect whether any 44 |
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| 73 | 73 | | other technology not defined in subsection (a) of this section that 45 Raised Bill No. 7310 |
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| 74 | 74 | | |
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| 75 | 75 | | |
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| 76 | 76 | | |
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| 77 | 77 | | LCO No. 5520 3 of 3 |
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| 78 | 78 | | |
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| 79 | 79 | | secures signatures, records or contracts or that is considered to be in an 46 |
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| 80 | 80 | | electronic form or an electronic signature or electronic record, as 47 |
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| 81 | 81 | | applicable. 48 |
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| 82 | 82 | | This act shall take effect as follows and shall amend the following |
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| 83 | 83 | | sections: |
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| 84 | 84 | | |
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| 85 | 85 | | Section 1 from passage New section |
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| 86 | 86 | | |
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| 87 | 87 | | Statement of Purpose: |
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| 88 | 88 | | To authorize the use of smart contracts in commerce in the state. |
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| 89 | 89 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, |
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| 90 | 90 | | except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is |
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| 91 | 91 | | not underlined.] |
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| 92 | 92 | | |
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